4 Major Home Buying Mistakes to Avoid

There are four major home buying mistakes I see people make whether they're buying their first or fifth home. Here's how you can avoid them.

There are four major mistakes that buyers make during the process of buying a home. These are general mistakes that buyers make whether they're buying their first, second, or third home:

1. Not getting pre-approved for financing before looking at homes. This process is very simple: contact a local lender and, within 48 hours, you can get pre-approved over the phone or Internet. There is no cost or obligation, so I highly recommend you do this first. You'll also know what you can afford and what the costs are. Smart sellers will require you to have a pre-approval letter anyway.
2. Getting pre-approved by on out-of-state or online lender. With these lenders, you can't talk to them in person. Your lender is someone you'll want to have face-to-face contact with. I see a lot of people using these online services because they offer a cheaper rate, and it's a big mistake. I've heard too many horror stories about these lenders not being able to process a loan in time. Call your real estate agent for a recommendation for a local bank or mortgage company.
3. Not having a full-time agent. You want someone who does this as their full-time job actively looking for homes with you. There are all kinds of online searches you can use, like Zillow and Trulia, that are not very accurate and are not rated well by the Better Business Bureau. You want to have a full-time agent looking with you because many times that agent knows about listings before even going online.
4. Not having an experienced agent writing the offer and negotiating on your behalf. Many buyers just pick any agent or work with the listing agent of the home they're buying. You want someone who is working on your behalf to write the offer with your best interests in mind, and then negotiate the best price for you.

If you have any questions about the home buying process or you're interested in buying a home, give us a call or send us an email. We'd love to hear from you!

When Is the Best Time to Sell Your Home?

Fall is here, causing many people to ask, “Should I sell my home now or wait until spring?” There are four main reasons why you should put your home on the market this fall.

Fall is here and a lot of people are asking, “Should I sell my home now or wait until the spring?” I believe there are four reasons why it would be better to sell your home now rather than waiting for spring.

In my opinion, the number one reason to sell now is to take advantage of low interest rates. Rates are hovering in the 2.9% to 3.5% range, which is practically free money. I don’t anticipate those rates staying low much longer.

Why not? It’s an election year. I have been through eight elections already and, after each one, rates typically go up. The government holds rates down to make their party more favorable; once the election is over, rates will go up. It is highly likely that rates will be higher next spring. That’s the second reason you should sell now because higher rates do affect your home sale.

Interest rates are low, but they will go back up soon.

Another reason you should sell now is the low inventory. In some of our marketplaces, we’re seeing as little as 30 to 90 days of inventory available on the market. A couple of years ago, those inventory levels were significantly higher, with six months of inventory available. There will be more homes on the market in spring, which means you will wind up competing with more sellers. Since inventory levels are low now, you’ll have a better chance of selling your home.

Finally, in my opinion, the seller’s market is coming to an end. I have been doing this for 35 years and I’ve talked to brokers all over the United States and they agree. In fact, certain markets like California and Florida are already seeing the seller’s market change. Inventory levels have gone up to 180 days and prices are not going up any higer. If you are thinking of selling your home, you should sell now before the seller’s market ends.

In short, selling your home this fall is actually more advantageous than waiting for spring. If you have any questions about preparing your home for the fall market or about real estate in general, give me a call or send me an email. My team and I would be happy to help you!

Milwaukee Real Estate: How to Determine What Your Milwaukee Home Is Worth

 

There are many great Metro area homes for sale. Click here to perform full home search, or if you're thinking of selling your home,click here to contact us for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call us at (262) 797-6453 or (262) 798-1162 for a FREE home buying or selling consultation to answer any of your real estate questions.

Many homeowners want to know what their home is worth before they put it on the market. How do buyers determine the value of your home? In other words, how is market value determined?

First, though, there are a few misconceptions about home value that I would like to clear up:

• Home value is not based on what you want or need to pay off your loan amount. 
• Home value is not based on what your neighbors think you should get for your home. After all, neighbors are biased. 
• Your tax assessed value does not reflect market value. Tax assessed values can be off by as much as 20%. 
• The appraised value is not the same as market value. If you have an appraisal that is a year old, it is based on outdated information. 
• Home value is different from your insurance value. Insurance companies insure the house for the rebuilding or replacement cost, which is much higher than market value. 
• Sites like Zillow cannot determine home value with just a computer algorithm. 

Home buyers determine the market value of your property by looking at the features and benefits of your home (how many bedrooms, bathrooms, square footage, etc.) and compare your property to other homes on the market. They look at recently sold properties similar to yours to see what your home is worth.

What have similar homes in your area sold for?

Real estate agents can help you figure out your current market value. Give us a call if you are interested in a free home pricing report or if you have any other questions. I would be happy to help you!